Research On MRO Procurement Optimization Of FAW-VW

With the development of China’s economic,the automobile industry has become one of the pillar industries of China,and China’s automobile production has been the first in the world for many years.However,competition in the automotive industry has also become more intense,with domestic and joint venture vehicles,traditional energy vehicles and new energy vehicles competing to a white-hot degree,and many traditional well-known car companies or brands have already withdrawn from the Chinese market.In this context,any car company that wants to survive must keep up with the trend of the times and take the initiative to transform and change in order to stay afloat.In the process of transformation of the automotive industry to new energy and intelligence,the traditional automotive industry is under tremendous pressure,and it is an inevitable choice for its development to enhance its competitiveness through internal transformation and tapping into the potential on the basis of increased relevant investment.In the process of internal transformation,no department or organization can be left out of the process.R&D,production,sales,personnel and procurement all need to build processes and systems under the new system.With the development of technology and trade,the globalization of manufacturing has become a trend,and the importance of procurement supply chain management is becoming increasingly apparent.Many companies have set up supply chain management as a separate senior department,and even give procurement a very strong voice in key decisions.In procurement management theory nowadays,procurement has become a key department for enterprise profit enhancement,and is as important as R&D,sales and other areas.As companies continue to practice,they find that there is a large profit margin in the science of procurement.Through scientific management and practice,procurement can significantly reduce the production and distribution costs of enterprises,increasing their profits and economic benefits,while also saving resources and promoting the sustainable development of society.In the manufacturing system,procurement is divided into direct procurement and indirect procurement.Direct procurement is the purchase of materials and services for the production and sale of products related to the main business of the enterprise,while indirect procurement is used to support the production of products in the non-production category of industrial goods,which is now generally known as MRO-type procurement in the industry.The specific characteristics of the procurement are large volume,low average value,many suppliers,low procurement efficiency,the value of procurement generally accounts for only 8% of the total procurement of enterprises but consumes more than 60% of the workload of the procurement department.In the process of tapping the potential within the enterprise,combining the characteristics of MRO procurement,improving the MRO procurement process and methods through digital tools has gradually become an inevitable choice for enterprises to reduce production costs and improve efficiency.From the perspective of modern enterprise operations,the importance of MRO materials and services is increasing,and scientific and efficient MRO procurement management is a key factor in ensuring normal production and operation,reducing related costs and improving output efficiency.For FAW-Volkswagen,in the context of the integration of the digital economy and the real economy,and in the face of challenges such as falling consumer demand,labor shortages,supplier shutdowns and rising costs in the post-epidemic era,how to further reduce operational costs by establishing a digital procurement platform and building a smart procurement supply chain has become a new issue for the development of the enterprise.This paper selects the MRO procurement of FAW-Volkswagen Automobile Co.,Ltd.as a typical development strategy research,applies the relevant knowledge of procurement management and enterprise strategic management theory,analyzes the actual situation and existing problems of MRO procurement of FAW-Volkswagen Automobile Co.We propose the final IT solution,namely the establishment of a digital procurement e-marketplace,to improve procurement efficiency and quality in all dimensions.There is no end to the transformation of an enterprise,and the functions and attributes that can be given to an MRO Procurement E-mall is constantly expanding.Enterprises can purchase external goods and services from a simple internal E-mall and optimize internal idle assets.Procurement E-mall can achieve both internal services and external sales,which will become a new growth point for corporate profits.